A letter to President Bush regarding the Economy

Harpseal | June 15, 2003 | Harpseal

[harpseal]

Dear President Bush,

Sir, I am writing today about what I and some others see as some significant problems with our current international trade policies. Specifically, our research has shown that the United States Government has agencies and policies in place that provide direct support to competitors of the USA. Specifically I am referring to The Overseas Private Investment Corporation as the first of these agencies. I realize this agency was created and expanded before your administration but it is a problem and it should be addressed by your administration. Policies in place that may harm American permanent residents include the H1B and L1 visa programs. As one of your supporters in the 2000 elections I appreciate many of the policies you have advocated over your term so far. I would hope that you are elected to a second term but I am concerned the economy may provide you with problems over the coming months until November 2004.

As I am sure you are aware unemployment in the USA is still rising despite the emaciated version of your tax cut that was passed and this continued rise in unemployment and underemployment may well threaten any economic recovery. A part of the reason that companies are not hiring is the effect of imports on the American economy. The Overseas Private Investment Corporation is an agency of the United States Government that provides American Corporations loans and political risk insurance for investing in nations other than the USA. Sir, this is not Free Trade or anything even close. This is government subsidy to the low cost labor of China, India, and other so called developing nations who are in direct competition with American workers for jobs. There is a correlation between productivity and capital investment. Simply eliminating this organization and its programs would help to stimulate investment in new plant and equipment in the USA since there would no longer be a subsidy to investing offshore.

Sir, another problem is the abuse of our immigration law that allows foreign guest workers who are willing to work for less than American workers in technical professional areas. I am referring to the H1B and L1 visa programs. The H1B program is supposed to provide temporary guest workers to help alleviate short term shortages within the American labor supply. Instead it has become a permanent short circuit around our regular immigration laws. As a result American engineers and IT people are out of work in record numbers. Sir, these people are American citizens and they vote. They need their government to enforce the laws for their protection. Curtailing the abuses of these programs will be a winning political issue because it is the right thing to do.

Sir the political implications of not doing anything about these programs are clear. A Democrat will run on the economy promising a government jobs program which will do little to help the economy really but may get enough votes to threaten your re-election. By taking a stand on these programs you will attract much of the traditional Democrat supporters in the next election. Your stand against government handouts will appeal to your base while driving a wedge between Liberals and the union member Democrats and independents. Thank you for your consideration

Respectfully yours,

[Nowhere Man]

I note the comments above by Dugway Duke accusing this letter of being socialistic. I really wish I could use that letter to tar every one of the Free Traitors for what they are people who seek to destroy their fellow Americans and their nation for their personal gain. However I must let the reply to my letter and the response to it stand on trheir own merits. This letter was crafted to avoid any pro Socialist stands in any sense of the word. So clearly Dugway Duke to attack it as socialism was defending Big Government and a handout of taxpayer dollars for no value recieved to the American people.

I really didn't see anything socialistic in your letter. Again I think this gets to the point when Theodore H. White said about the "Republicans being for virtue," maybe to some of the free traders that don't get it, they would see this as socialistic but it really is not, it is about the health and well being of our country. Trouble is, some see the virtue as the end game and would cut their own nose off to spite the face. You cannot have that because if you don't realize there is a problem and don't do anything about it, you'll just end up with a Democrat who will but his solution would be socialistic more often than not.

BTW, thanks for the ping, I'll get to work on my letter using yours as an example.

[hedgetrimmer]

Great letter.

In case you didn't know, it is very effective to cc: different newspaper editors on these letters so that they will get printed in various newspapers at the same time the president receives a copy. That way he will know the truth is spreading and will be more likely to responds.

Another method would be to cc: the head of the DNC(make sure the White House knows you are doing this) or any democrats(besides Hilary) that might be running for president. If they pick it up as an issue, maybe a real two-party dialog can begin on this issue.

[harpseal]

Since what I am proposing in this letter is cutting a government agency and enforcing the Immigration laws of the USA and what I proposed in this letter was strictly limited to those two issues I was careful to avoid being subject to the accusation of not being conservative. Now there is one conservative argument against my proposal for which I do have answer when and if it is raised. that is the companies taht took advabntage of OPIC in the past have a right to have their contracts respected. the answer to that lies in the fact that they do not have any right to enter in any future contracts and they do have a roght to compensation for abrogation of their contrcatual claims from prior activities. My personal solution is those compensation funds should come from a revnue tarriff on imports from nations that have recived OPIC subsidized investments.

[harpseal]

I shall let the White House know of my CC's and I shall include the DNC and several newspapers and a few members of Congress. Of course any one is herby free to copy any or all of my letter under their own name to send to any newspaper or any politicla candidate as their own. I want things done not credit.

[hedgetrimmer]

Here are email addresses to some of the media. This list is a little old, but it should be mostly ok.

letters@newsweek.com,
conedit@ajc.com,
letters@baltsun.com,
letter@globe.com,
news@globe.com,
letterstoeditor@bostonherald.com,
*opinion@charlotte.com* opinion@charlotteobserver.com,
letters@suntimes.com,
news@cleveland.com,
letterstoeditor@dallasnews.com,
letters@denverpost.com,
business@det-freepress.com,
letter@detnews.com,
viewpoints@chron.com,
letters@latimes.com,
HeraldEd@herald.com,
politics@startribune.com,
letters@newsday.com,
letters@nytimes.com,
Inquirer.Opinion@phillynews.com,
DailyNews.Opinion@phillynews.com,
letters@post-gazette.com,
letters@uniontrib.com,
chronletters@sfgate.com,
*letters@examiner.com*, letters@sjmercury.com,
editpage@seattle-pi.com,
opinion@seatimes.com,
editor@usatoday.com,
letter.editor@edit.wsj.com,
Letterstoed@washpost.com,
wtnews@wt.infi.net,
feedback@cnn.com,
cnn.onair@cnn.com,
crossfire@cnn.com,
viewer@c-span.org,
comments@foxnews.com,
hardball@cnbc.com,
letters@msnbc.com,
opinion@msnbc.com,
TheNews@msnbc.com,
dateline@news.nbc.com,
nightly@news.nbc.com,
today@news.nbc.com,
MTP@nbc.com
speaker@aim.org,
takeaction@americasvoice.com,
pat@theamericancause.org,
cbnonline@cbn.org,
viewer@c-span.org,
drudge@drudgereport.com,
insight@wt.infi.net,
jwatch@erols.com,
imus@msnbc.com,
hq@lp.org,
marklevin@aol.com,
jacolumn@toto.net,
feedback@usatoday.com

Opinionators:

chuck@chuckbaldwinlive.com,
belling@cyberlynknetwork.com,
qra@inteport.com,
wtp@wtp.org,
bq@radioamerica.org,
bob@bobdornan.com,
*larry@larryelder.com* the_sage@larryelder.com,
roger@regularguy.com,
hannity@foxnews.com,
roger@rogerhedgecock.com,
lkl@cnn.com,
rush@eibnet.com,
pov@usaradio.com,
bob.mohan@kfyi.com,
jill@lvcm.com,
jpa@wava.com,
quinn@warroom.com,
drshow@wamu.org,
michael.a.savage@abc.com,
wxyt@wxyt.com,
talkback@cnn.com,
liberty@fcref.org,
wilbur@kvi.com

[harpseal]

thank you

[BlazingArizona]

I am truly amazed at the number of "conservatives" who see nothing wrong with robbing their fellow Americans by forcing those fellow Americans to buy their products regardless of the price.

It might help to actually read the text of the letter. It does not advocate subsidizing American jobs. It urges that we can OPIC, a government agency that not only subsidizes sending jobs overseas but insures businesses against the extra political risk of overseas operations.

[DoughtyOne]

What a great articulate presentation. Very nice.

[FR_addict]

Great letter.

I'm going to use it as a template for my letter to the White House.

[lelio]

If you wanted to add some points, you might want to throw in that cheap wage slaves from India are destroying any incentive to startup a new software company here with US workers as someone can easily steal the idea and do it over there for a fraction of the cost.
Yes, some on here will say "Get into another market then" But the US wasn't built on going after ideas that pan out after just 6 months of work, that's the legacy of the Internet Bubble of 2000. If we want to remain in this bubble state, then by all means keep around this 800 pound gorilla of subsidized foreign labor and no one will try and innovate.
And someone should remind Robert Zoellick that he's OUR representive, not India's.

[hedgetrimmer]

More info about OPIC



As a government corporation, OPIC is not subject to income tax.

FUND BALANCE WITH U.S. TREASURY: Substantially all of OPIC’s receipts and disbursements are processed by the U.S. Treasury which, in effect, maintains OPIC’s bank accounts. For purposes of the Statement of Cash Flows, fund balance with U.S. Treasury is considered cash.
** does it cost the taxpayer money to have the US Treasury act as a bank for OPIC?



OPIC, as a U.S. Government corporation, is subject to financial decisions and management controls of the Office of Management and Budget. As a result of this relationship, OPIC’s operations may not be conducted nor its financial position reported as they would be if OPIC were not a government corporation. Furthermore, in accordance with international agreements relating to its programs, as well as internal U.S. Government operating procedures, foreign currency acquired by OPIC can be used for U.S. Government expenses. This facility constitutes an additional means, which would otherwise be unavailable, by which OPIC can recover U.S. dollars with respect to its insurance and investment financing programs.

4. Fund Balance with U.S. Treasury
OPIC is restricted in its uses of certain cash balances, as described below. The fund balance with U.S. Treasury as of September 30, 2001 and 2000 consists of the following (dollars in thousands):
Fund Balance with U.S. Treasury
2001 2000
Restricted:
Pre-Credit Reform $ 861 $ 3,694
Credit Reform 661,041 589,728
Interagency fund transfers 2 252
Unrestricted: 16,666 870
Total $678,570 $594,544

OPIC’s capital, retained earnings, and reserves available for insurance at September 30, 2001 and 2000 totaled $2.3 billion and $2.2 billion, respectively. Charges against retained earnings could arise from (A) outstanding political risk insurance contracts, (B) pending claims under insurance contracts, and (C) guaranties issued in settlement of claims arising under insurance contracts. (A) POLITICAL RISK INVESTMENT INSURANCE: OPIC insures investments for up to 20 years against three different risks: inconvertibility of currency, expropriation, and political violence. Insurance coverage against inconvertibility protects the investor from increased restrictions on the investor’s ability to convert local currency into U.S. dollars. Inconvertibility insurance does not protect

http://www.opic.gov/pdf/publications/01ar.pdf

[A. Pole]

If you wanted to add some points, you might want to throw in that cheap wage slaves from India are destroying any incentive to startup a new software company here with US workers as someone can easily steal the idea and do it over there for a fraction of the cost.

I wonder many new inventions were made in India or China?

[BlazingArizona]

OPIC does not cost you a red cent. Therefore, it is not the use of taxpayer money to deprive you of a job.

You mean, like this sterling example of Your Tax Dollars At Work? http://www.cbsnews.com/stories/2002/02/24/national/main330390.shtml

Server farms need stable sources of electrical power. Plants like that one Enron built with OPIC funding allowed India to build up its IT infrastructure at our expense instead of having to find its own sources of funds. This made it easier for well-connected Silicon Valley "entrepreneurs" to, with the help of more OPIC money of their own, do this:
http://www.redherring.com/mag/issue20/india.html

Because OPIC pays its day-to-day operating expenses from user fees on the companies that borrow from it, it claims to be "self sustaining". But if there is another Hindu-vs-Muslim war over there, OPIC borrowers will be able to invoke their guaranteed protection against political risk, the massive cost of which would have to be borne by Uncle Sugardaddy. If it were not for OPIC, companies oursourcing their IT operations would have to risk losing their investments if the local politics were to go sour.

[hedgetrimmer]

Add to the list of financial corporations getting help to move overseas: Citicorp.

BY THE BOARD OF DIRECTORS
OF
THE OVERSEAS PRIVATE INVESTMENT CORPORATION



BE IT RESOLVED, that the Board hereby approves financing under Section 234 of the Foreign Assistance Act of 1961, as amended, of up to $125 million principal amount, plus interest thereon, to Citigroup Inc., its acceptable affiliates, or Govco Incorporated for a lending facility in any country in Sub-Saharan Africa.



Approved by the Board of Directors
on January 30, 2003

http://www.opic.gov/FOIA/Board%20Resolutions/2003%20BDR/BDR-03-11.htm

[hedgetrimmer]

Unocal needs money for overseas developmemt?
THE BOARD OF DIRECTORS
OF
THE OVERSEAS PRIVATE INVESTMENT CORPORATION




BE IT RESOLVED, that the Board hereby approves financing under Section 234 of the Foreign Assistance Act of 1961, as amended, in the principal amount of up to $300 million for the West Seno I oil and gas development and production project in East Kalimantan, Indonesia sponsored by Unocal Corporation.


Approved by the Board of Directors
on January 31, 2002





http://www.opic.gov/FOIA/Board%20Resolutions/2003%20BDR/BDR-03-11.htm

[hedgetrimmer]

George SOROS!!! He gets money from OPIC??!!

BY THE BOARD OF DIRECTORS
OF
THE OVERSEAS PRIVATE INVESTMENT CORPORATION



BE IT RESOLVED, that Board Resolution BDR(00)21 is hereby amended to include an increase of $43 million to the previously approved investment guaranty of $100 million for the Southeast Europe Equity Fund Ltd. (to be renamed Soros Investment Capital Ltd.), a privately managed direct equity investment fund (the “Fund”) managed by an affiliate of Soros Private Funds Management ("SPFM"); and that Armenia, Azerbaijan, and Georgia (the "Caucasus") be added to the Fund's current geographic scope of Southeast Europe and Turkey.





Approved by Notational Vote of the
Board of Directors on July 23, 2002

http://www.opic.gov/FOIA/Board%20Resolutions/2002%20BDR/BDR-02-10.htm

[hedgetrimmer]

Of course ENRON can't afford to invest its own money in Brazil

BY THE BOARD OF DIRECTORS
OF
THE OVERSEAS PRIVATE INVESTMENT CORPORATION


BE IT RESOLVED, that the Board hereby approves financing under Section 234 of the Foreign Assistance Act of 1961, as amended, of up to $190 million as part of the financing of a power project in Brazil sponsored by Enron Corp.

Approved by the Board of Directors
on June 19, 2001

[BlazingArizona]

A great letter, but it doesn't address the reason that Americans are having a hard time competing with foreign business and the reason, therefore that foreign products can undersell those produced in our country.

Certainly, but the first rule for writing any political letter is: stick to one subject. Writing a book about all the negative impacts government regulation can have on business is quite a different proposition from writing a letter sp[ecifically hitting one point.

OPIC is an example of the flip side of government regulation: the use of governmental power and money to promote some businesses over others.

[hedgetrimmer]

It appears as though our taxpayer financed OPIC also insures foreign investors, not just American.

BY THE BOARD OF DIRECTORS
OF
THE OVERSEAS PRIVATE INVESTMENT CORPORATION



BE IT RESOLVED, that the Board hereby approves issuance by the President of a contract of political risk insurance under Section 234 of the Foreign Assistance Act of 1961, as amended, covering political risks for a bond offering by Telefónica del Perú, a telecommunications services company in Peru; provided, however, that the Corporation's maximum liability pursuant to the coverage issued hereunder shall not exceed $200 million plus interest and any other amounts relating to compensation paid pursuant to the terms of such contracts.



Approved by the Board of Directors
On June 2, 1999

[YankeeReb]

The White House probably has a dozen summer interns who filter out any e-mails not in synch with the Administration Policy. They don't count the opposition ... they only count the favorables.

GW Bush is no fool, if there's a large number of people complaining out there in the heartlands, I believe he'll want to know about it. The president has a number of burning issues to deal with on any given day, so if the letter is written by an obvious crank it will be round-filed. This letter however was well thought out and the tone was respectful. Maybe one letter can be dismissed, but 100, or 1000 or more (which is easilly possible on a site such as FR) will grab someone's attention. We already can see the administration is beginning to shift focus onto the domestic adgenda. Maybe you agree with tax cuts as a solution maybe not, but it is a step in the right direction. Addressing this issue is another step. I think we've become so accustomed to having "our pain felt" and a president who governs by sticking his finger in the air to see how the wind's blowing that we forget real solutions take time.

If it turns out that the republicans don't address the offshoring of US jobs, then I fear for our future because take a look at the 9 dwarves waiting in the wings in '04.